Systems and methods to implement an exchange messaging policy

ABSTRACT

Systems for and methods of evaluating messaging, comprising, receiving, via at least one server device, one or more messages, and said at least one server device processing at least one of the one or more messages by grading content included in said at least one message, applying a weighting factor to said at least one message according to said grading, thereby determining a weighted message count for said at least one message, aggregating the weighted message count for said at least one message, and initiating an action if the aggregated weighted message count meets or exceeds a predetermined count threshold.

FIELD

The present disclosure relates generally to messaging, and moreparticularly to evaluating message content for purposes of discouraginginefficient and excessive messaging, while at the same time encouragingreceipt and submission of preferred and desired message content.

BACKGROUND

In the business of financial exchange trading, messages are often usedby participants to communicate with an exchange trading system (“ETS”)for purposes of trading in financial instruments. Indeed, participantsmay use messages to submit bids (to purchase) and/or offers (to sell)financial instruments to an exchange trading system. Generally speaking,as the number of bids and offers received at an exchange trading systemincreases, market liquidity is maintained or increases. Thus, in thisrespect, using messages to submit bids/offers to an exchange tradingsystem provides a fast and effective means of maintaining (and evenincreasing) market liquidity.

There is, however, a caveat to the foregoing. If, for example, anexchange trading system is flooded with bids or offers that areexcessively high or low, market prices may be improperly (and sometimes,intentionally) shifted. Using messages to submit such bids or offers mayserve to exacerbate the improper price shifting. In addition,inefficient and excessive messaging can slow the performance of theexchange trading systems, and increase bandwidth and other operationrequirements for participants.

Accordingly, there is a need for a mechanism that encourages thecontinued use of messages to maintain and enhance market liquidity,while at the same time discouraging inefficient and excessive messagingwithout compromising market liquidity.

SUMMARY

Disclosed herein are systems for and methods of evaluating messaging,comprising, receiving, via at least one server device, one or moremessages, and said at least one server device processing at least one ofthe one or more messages by grading content included in said at leastone message, applying a weighting factor to said at least one messageaccording to said grading, thereby determining a weighted message countfor said at least one message, aggregating the weighted message countfor said at least one message, and initiating an action if theaggregated weighted message count meets or exceeds a predetermined countthreshold. Such action may include, for example, one or more of:assessing a financial penalty, increasing a messaging cost, suspendingmessaging privileges, generating a report that includes a summary ofsaid weighted message count, and generating and transmitting a notice.

In an exemplary embodiment, the processing steps summarized above may beonly if a total number of messages received meets or exceeds apredetermined message threshold. In another exemplary embodiment, thesystems and methods described herein may also include categorizing oneor more messages (received at a server device), and performing theprocessing steps on only those messages pertaining to categories havingreceived over a predetermined number of messages.

In yet another exemplary embodiment, the grading of at least one messagemay result in a weighting factor of zero, thereby resulting in aweighted message count of zero for said at least one message. Suchgrading may include extracting a portion of the message content from theat least one message, comparing said portion to a predetermined metric,and assigning a grading value based on said comparison, wherein saidgrading value is used to determine said weighting factor. Optionally,this comparison feature may include determining a proximity between thecontent portion and the predetermined metric, and the grading value maybe based on the proximity.

In still another exemplary embodiment, the systems and methods describedherein may further comprise calculating a divisor representative of aquality of one or more messages, and dividing the aggregated weightedmessage count by said divisor to determine a ratio, such that an actionmay be initiated if the ratio meets or exceeds a predetermined ratiothreshold.

Optionally, the at least one server device noted above may comprise apart of an exchange trading system, such that messages received by theserver device may include content relating to exchange tradingactivities, and such messages may be received from one or more tradingcomputer terminals in communication with the at least one server device.These trading terminals may include, without limit, a personal computer(PC), mobile communication device, smart phone, server, personal deviceassistant (PDA), kiosk, automatic teller machine (ATM), wirelessfidelity (WiFi) access point, router, database device, multi-mediadevice, a gaming device, and any other mobile or stationary computingand/or communication device/apparatus.

Content relating to trading activities may include, without limit,market order data, bid data, offer data, order revision data, hold orderdata, cancel and replace order data, trade consummation data, cancelorder data, etc. The grading of such content may comprise comparing aportion of the message content to a predetermined metric that comprisesat least one of a live market price and a predetermined numeric scale.In addition, grading such content may optionally comprise determining aproximity between price data (included in one or more messages) andmarket prices.

As yet another option, content of messages relating to exchangeactivities may be categorized by commodities market. Then, only thosemessages pertaining to categories having received over a predeterminednumber of messages may be processed as summarized above.

In another exemplary embodiment, the systems and methods describedherein may comprise calculating a total number of executed lotsresulting from one or more messages received by the at least one serverdevice, and dividing the aggregated weighted message count by the totalnumber of executed lots to determine a ratio, wherein an action isinitiated if the ratio meets or exceeds a predetermined ratio threshold.

In yet another exemplary embodiment, the systems and methods describedherein may comprise calculating a total number of executed tradesresulting from one or more messages, and dividing the aggregatedweighted message count by said total number of executed trades todetermine a ratio, wherein an action is initiated if the ratio meets orexceeds a predetermined ratio threshold.

BRIEF DESCRIPTION OF THE DRAWINGS

For a better understanding of the embodiments described in thisapplication, reference should be made to the Description below, inconjunction with the following drawings in which like reference numeralsrefer to corresponding parts throughout the figures.

FIG. 1 depicts a flow chart of an exemplary method of evaluatingmessaging.

FIG. 2 depicts an exemplary system for evaluating messaging.

DETAILED DESCRIPTION

Reference will now be made in detail to exemplary embodiments, examplesof which are illustrated in the accompanying drawings. In the followingdetailed description, numerous specific details are set forth in orderto provide a sufficient understanding of the subject matter presentedherein. But it will be apparent to one of ordinary skill in the art thatthe subject matter may be practiced without these specific details.Moreover, the particular embodiments described herein are provided byway of example and should not be used to limit the scope of theinvention to these particular embodiments. In other instances,well-known data structures, timing protocols, software operations,procedures, and components have not been described in detail so as notto unnecessarily obscure aspects of the embodiments described herein.

The embodiments described herein may be used to accomplish many thingsincluding, for example, to encourage messaging that maintains andincreases market liquidity, all while discouraging inefficient andexcessive messaging. In addition, the embodiments described hereinprovide a mechanism for monitoring and reporting on market participants'trading activities, and for ensuring that market participants operatewithin reasonable messaging thresholds. The embodiments described hereinalso provide a mechanism for identifying messages that add or enhancemarket liquidity, and for initiating certain actions if a marketparticipant submits too many messages that detract from or fail toenhance market liquidity.

Turning now to FIG. 1 , a block diagram 100 showing an exemplary methodof evaluating messages according to this disclosure is shown. As aninitial step, the exemplary method 100 comprises receiving, via at leastone server device, one or more messages 110. As further discussed below,this at least one server device may include one or more stand-aloneservers, or it may be a part of a larger system, such as an exchangetrading system. In such an embodiment, the at least one server devicemay receive messages that include content relating trading activities,such as market order data, bid data, offer data, order revision data,hold order data, cancel and replace order data, trade consummation data,cancel order data, or any other type of data and information relating totrading activities. Such messages may be received, for example, from oneor more trading terminals that are in communication with the at leastone server device via, for example, a wired or wireless communicationsnetwork. Examples of such trading terminals include, without limit, apersonal computer (PC), a mobile communication device, a smart phone,another server, a personal device assistant (PDA), a kiosk, an automaticteller machine (ATM), a wireless fidelity (Wi-Fi) access point, arouter, a database device, a multi-media device, a gaming device, and/orany other mobile or stationary computing and/or communication device.

Returning now to FIG. 1 , once the one or more messages are received,the at least one server device processes at least one of the receivedmessages 120. This processing may limited to occurring only after apredetermined number of messages is received (i.e., after the totalnumber of messages received meets or exceeds a predetermined messagethreshold). In another embodiment, the received messages may first becategorized, in which case the processing may be limited to only thosemessages pertaining to particular categories having received over apredetermined number of messages. For example, if the messages receivedrelate to exchange trading activities, the messages may first becategorized by commodities market, and the processing may be limited toonly those commodities market categories having received over apredetermined number of messages.

The processing 120 referenced above may include grading the contentincluded in the at least one message 130. In one embodiment, grading mayinclude the process of extracting a portion of a message's content,comparing that portion to a predetermined metric, and assigning agrading value based on the comparison. This grading value may then beused to determine a weighting factor (discussed below). Optionally, thiscomparison may include determining a proximity between the extractedcontent portion and the predetermined metric, in which case the gradingvalue would be based on said proximity. As an illustrative example, ifthe messages received relate to exchange trading activities, the gradingstep 130 may include extracting price data from a message, comparing(e.g., determining a proximity between) the extracted price data and apredetermined market metric (e.g., a live market price, a historicmarket price, a predetermined numeric scale, etc.), and assigning agrading value based on the proximity of the extracted price data and themarket metric.

Once a message's content is graded 130, a weighting factor is applied tothat message 140 according to the grading, so as to provide a weightedmessage count for that message. As further discussed below, thisweighted message count is used to determine whether a predeterminedmessaging threshold has been met or exceed. Thus, for example, if thecontent of a particular message receives a favorable grading, themessage will receive a favorable weighting. Similarly, if the messagecontent receives a poor grading, the weighting factor applied to themessage will reflect the poor grading

As an illustrative example, it is assumed that the messages received 110by the at least one server relate to exchange trading activities, andthat the messages are graded 130 according to a proximity between pricedata extracted from the messages and live market prices. In such ascenario, messages that include competitive bid or offer price data areencouraged, as such price data adds to market liquidity. As a result,these messages will receive a favorable grading and a favorableweighting factor. In one embodiment, the most favorable weighting factormay be zero, such that when applied to a message, the resulting messagecount for that message is zero. This means that that message will notcount towards a participant's messaging limit or threshold. Messagesthat include a ‘best’ bid or offer price, for example, may receiveweighting factors of zero.

Conversely, messages that include non-competitive bid or price data willreceive a poor grading, resulting in a heavily weighted factor beingapplied to such messages. As will be readily understood, heavilyweighted messages accelerate the speed at which a message count reachesa messaging threshold. Thus, for example, if a particular participantcontinually submits messages having non-competitive bids or offers(e.g., bids or offers that are excessively higher or lower than currentmarket prices), that participant will reach his messaging threshold muchfaster than a participant who consistently submits messages havingcompetitive price data.

As the content of each message is graded 130 and weighted 140, theweighted message count for the received messages is aggregated 150 andcompared to a predetermined messaging threshold. Notably, thisaggregating may occur continually, at predetermined time intervals(e.g., every hour), or periodically after a predetermined number ofmessages have been received (e.g., every 50 messages received).

If the aggregated message count meets or exceeds the threshold, one ormore actions may be initiated 160. These actions may include, withoutlimit, assessing a financial penalty, increasing a messaging cost,and/or suspending messaging privileges of the participant (or anydesignated entity) that exceeded the messaging threshold. In addition,the at least one server device may optionally generate a report thatincludes a summary of the weighted message count, and it may generateand transmit a notice (e.g., alerting that the messaging threshold hasbeen met or exceeded) to any desired entity.

In one exemplary embodiment, prior to initiating any action 160 assummarized above, the at least one server may first calculate a divisorrepresentative of a quality of the one or more messages received 110,and then divide the aggregated weighted message count by the divisor todetermine a ratio. This ratio may then be used to determine whether toinitiate any action 160 (e.g., the action is initiated if the ratiomeets or exceeds a predetermined ratio threshold).

As an illustrative example, a divisor representative of a quality of amessage may include a total number of executed lots resulting from amessage, a total number of executed trades resulting from a message, orany other metric indicative of the quality of a particular message.Thus, the total number of executed lots (or executed trades) resultingfrom a message may be calculated and then used to divide the aggregatedweighted message count to yield a ratio. This ratio may then be comparedto a predetermined ratio threshold to determine whether to initiate anyof the actions discussed above. If the ratio meets or exceeds the ratiothreshold, an action may be initiated 160.

The exemplary methods and embodiments discussed above may be carried outby one or more modules, components or function units of one or morecomputers, networks, servers and/or calculation devices. In the presentdescription, the terms component, module, and functional unit, may referto any type of logical or functional process or blocks that may beimplemented in a variety of ways. For example, the functions of variousblocks can be combined with one another into any other number ofmodules. Each module can be implemented as a software program stored ona tangible memory (e.g., random access memory, read only memory, CD-ROMmemory, hard disk drive) to be read by a central processing unit toimplement the functions of the present invention. Or, the modules cancomprise programming instructions transmitted to a general purposecomputer, server or to graphics processing hardware via a transmissioncarrier wave. Also, the modules can be implemented as hardware logiccircuitry implementing the functions described herein.

Turning now to FIG. 2 , an exemplary system 200 for evaluating messagingin accordance with this disclosure, including implementing all of thevarious methods discussed above with respect to FIG. 1 , is shown. Theexemplary system 200 could operate in any kind of local area or widearea network that employs terminals or user interface platforms 210,both wireless and hard wired. The terminals or user interface platforms210 may include (without limit) one or more trading terminals, personalcomputers (PCs), mobile communication devices, smart phones, servers,personal device assistants (PDAs), kiosks, automatic teller machines(ATMs), wireless fidelity (Wi-Fi) access points, routers, databasedevices, multi-media devices, gaming devices or any other wired orwireless computing and/or communications device. Such terminals 210 maybe connected to the internet 220 or other wide area network (WAN) orlocal area network (LAN) via various server groups 230, databases 240,routers 250, stand alone servers 260 or any combination thereof. Thesystem 200 (or portions thereof) could be hard wired or wireless. In thecase of a wireless system, the terminals 210 could communicate and beconnected to the internet 220 via, for example, a wireless transmitter270 and/or one or more routers 250 or servers 260. The system 200 couldrun on a local closed network within a defined boundary, or on an openwide area network allowing more users to remotely log in.

Additionally, as an example, any number of protocols for using thesystem 200 could help protect it by secure means. These could entailanything, such as firewalls, password protection, encryption, logincredentials, biometric credentials, or any other security means for useraccess and data security.

In one embodiment, a single server 260 or a group of servers 230 may beprogrammed and configured to receive messages. Optionally, if the server230/260 is part of a larger exchange trading system, the messagesreceived may include content relating trading activities, such as marketorder data, bid data, offer data, order revision data, hold order data,cancel and replace order data, trade consummation data, cancel orderdata, or any other type of data and information relating to tradingactivities. Such messages may be received, for example, from the one ormore trading terminals 210 that are in communication with the serverdevice 230/260 via, for example, a wired or wireless communicationsnetwork (e.g., 220).

Upon receiving messages, the server device 230/260 is configured toprocess at least one of the received messages. This processing maylimited to occurring only after a predetermined number of messages isreceived. Optionally, the server device 230/260 may be configured tocategorize received messages, and process only those messages pertainingto one or more particular categories having received over apredetermined number of messages. For example, if the messages receivedrelate to exchange trading activities, the messages may first becategorized by commodities market, and the processing may be limited toonly those commodities market categories having received over apredetermined number of messages.

The processing referenced above may include grading the content includedin the messages. Such grading may include extracting a portion of amessage's content, comparing that portion to a predetermined metric, andassigning a grading value based on the comparison. This grading valuemay then be used to determine a weighting factor that is to be appliedto each message. In an exemplary embodiment, the server device 230/260may be configured to determine a proximity between price data extractedfrom a message and live market prices, and determine a grading valuebased on said proximity.

Once a message's content is graded, the server device 230/260 is furtherconfigured to apply a weighting factor to that message according to thegrading, so as to provide a weighted message count for that message. Asthe content of each message is graded and weighted, the server device230/260 is further configured to aggregate the weighted message count ofthe received messages, and compare the aggregated message count to apredetermined messaging threshold. Notably, this aggregating may occurcontinually, at predetermined time intervals (e.g., every hour), orperiodically after a predetermined number of messages has been received(e.g., every 50 messages received).

If the server device 230/260 determines that an aggregated message countmeets or exceeds the threshold, the server device 230/260 may initiateone or more actions. These actions may include, without limit, assessinga financial penalty, increasing a messaging cost, and/or suspendingmessaging privileges of the participant (or any designated entity) thatexceeded the messaging threshold. In addition, the server device 230/260may optionally generate and/or transmit a report that includes a summaryof the weighted message count, and it may generate and/or transmit anotice (e.g., alerting that the messaging threshold has been met orexceeded) to any desired entity.

In one exemplary embodiment, the server device 230/260 may be furtherconfigured to calculate a divisor representative of a quality of one ormore received messages, and then divide the aggregated weighted messagecount by the divisor to determine a ratio. This ratio may then be usedby the server device 230/260 to determine whether to initiate any actiondiscussed above. To illustrate, a divisor representative of a quality ofa message may include a total number of executed lots resulting from amessage, a total number of executed trades resulting from a message, orany other metric indicative of the quality of a particular message.Thus, the server device 230/260 may be configured to calculate a totalnumber of executed lots (or executed trades) resulting from a messageand then used to divide the aggregated weighted message count to yield aratio. This ratio may then be compared to a predetermined ratiothreshold to determine whether to initiate any of the actions discussedabove. If the ratio meets or exceeds the ratio threshold, the serverdevice 230/260 may initiate one or more actions.

In an illustrative embodiment, the methods and systems discussed abovemay be implemented to control and enhance the operations of an exchangetrading system (“ETS”). For purposes of this illustration, it is assumedthat the ETS provides a platform for engaging in financial tradingactivities, including in the exchange of financial instruments such ascontracts. It is also assumed that messages are submitted to the ETS toinitiate such financial trading activities. For example, a participantmay submit orders, bids, offers, order revisions, hold orders, canceland replace orders, trade consummation data, an cancel order data, etc.to the ETS in connection with contracts traded thereon.

In order to limit the amount of messages received and processed by theETS, while at the same time enhancing liquidity, the contracts exchangedvia the ETS may be grouped according to certain designated markets, andthen messaging thresholds may be imposed according to the differentdesignated markets. For example, the contracts be grouped intodesignated markets such as natural gas swap contracts, gas oil futurescontracts, gas oil spreads, etc., and then assigned a messagingthreshold per designated market. Thus, for example, the messagingthreshold for natural gas swap contracts may be set to 100,000 messages,while a messaging threshold for gas oil futures contracts may be set to250,000, etc. This means that any given participant (e.g., a tradingfirm) is limited to a 100,000 messaging count with respect to naturalgas swap contracts, and a 250,000 messaging count with respect to gasoil futures contracts. As further discussed below, having a messagingthreshold of say, 100,000 does not necessarily mean that a participantmay submit 100,000 messages. To the contrary, each message submitted bya participant may be independently evaluated, and then counted as eithera single message, as more than a single message, or even as less than asingle message depending on the ‘quality’ of the message content.

In this exemplary embodiment, a weighting scale may be used to apply aweighting factor to each message depending on its ‘quality.’ Thisweighting factor, when applied to each message, will either increase themessage count of that particular message to greater than one, maintainit at one, or reduce it to a value of less than one. To illustrate, if‘quality’ were based on price (e.g., the proximity between a currentmarket price and a price submitted via a message), a lower qualitymessage (i.e., one having a price that is very distant from a currentmarket price) may be weighted heavily, so as to accelerate the rate atwhich a participant reaches a messaging threshold. Conversely, highquality messages (i.e., those having prices that are very close or evenbetter than a current market price) may not be weighted at all (or evenweighted negatively) which will prolong reaching the messagingthreshold. An example priced-based weighting multiplier table is shownbelow:

TABLE 1 Price Based Weighting Price Difference Multiplier From Best BidOut- or Offer rights Spreads Description None (best bid or 0 0 If theprice is the best bid or offer, it offer) will not be counted At marketbid or 0 0 If the price equals the best bid or offer offer it will notbe counted. 1 tick off current 0.5 0.25 If the price is within oneminimum market price price fluctuation (tick) of the best bid or bestoffer it will count as one half of a message in an outright market andone quarter of a message in a spread market. 2 ticks off 1.0 0.5 If theprice is within two (2) ticks of current market the best bid or bestoffer it will count price as one (1) message in an outright market andone half (.5) message in a spread market. 3, 4 or 5 ticks off 2.0 1.0 Ifthe price is three (3), four (4) or current market five (5) ticks fromthe best bid or best price offer it will count as two (2) messages in anoutright market and one (1) message in a spread market. More than 5 3.02.0 If the price is more than five (5) ticks off current ticks from thebest bid or best offer market price it will count as three (3) messagesin an outright market and two messages (2) in a spread market.

As indicated in Table 1 above, messages submitting best bid or offerprices, or prices that equal a current market price, are given a zeroweighting multiplier. This, in essence, results in a zero message count,which means that the message is not counted (towards the messagingthreshold). This will encourage participants to continue to submitcompetitive bid and offer prices, thereby increasing market liquidity.Messages that include bids or offers that are far off of current marketprices, however, are penalized and weighted heavily to count as morethan one message, thereby increase the rate at which the messagingthreshold is met. Weighted messages may then be aggregated, andpenalties or other actions may be initiated if the aggregated messagecount for a particular participant meets or exceeds the predeterminedmessaging threshold.

In conjunction with weighting messages as discussed above, a weightedvolume ratio (“WVR”) may be used to determine whether to take actionagainst those participants that meet or exceed a predetermined messagingthreshold. This WVR may be defined as the total number of messagessubmitted by a particular participant for a particular designatedcontract market, multiplied by a price-based weighting scale (e.g., asdefined in Table 1), and then divided by the total number of lots ortrades executed as a result of the messages submitted by thatparticipant. The result is a figure for weighted messages per executedcontract. Thus, a WVR of 100:1 means that a particular participant hadto submit the equivalent of 100 messages to achieve one executed tradeor lot.

Like the messaging threshold discussed above, a WVR limit may be set asdesired and as appropriate for the particular implementation (e.g., aWVR limit may be set to 100:1, 500:1, or any other ratio). Participantswho meet or exceed the predetermined WVR limit for a designated contractmarket on a particular trading day or over any predetermined period oftime (e.g., over seven days in a calendar month) may receive some actioninitiated by the ETS. As noted above, these actions may include (withoutlimit) an electronic notification, assessment of a financial penalty, anincrease in messaging cost, suspension of messaging privileges,generation of a report, etc.

Notably, implementation of this WVR is not required, and it does notnecessarily depend on reaching the predetermined messaging threshold.Indeed, it is possible for a participant to exceed the WVR ratio limitwithout having reach the aggregated messaging threshold.

As disclosed herein, embodiments and features of the invention may beimplemented through computer-hardware, software and/or firmware. Forexample, the systems and methods disclosed herein may be embodied invarious forms including, for example, a data processor, such as acomputer or server that also includes a database, digital electroniccircuitry, firmware, software, or in combinations of them. Further,while some of the disclosed implementations describe components such assoftware, systems and methods consistent with the present disclosure maybe implemented with any combination of hardware, software and/orfirmware. Moreover, the above-noted features and other aspects andprinciples described herein may be implemented in various environments.Such environments and related applications may be specially constructedfor performing the various processes and operations described hereinaccording to industry-specific implementations (e.g., exchange tradingenvironment) or they may include a general-purpose computer or computingplatform selectively activated or reconfigured by code to provide thenecessary functionality. The processes disclosed herein are notinherently related to any particular computer, network, architecture,environment, or other apparatus, and may be implemented by a suitablecombination of hardware, software, and/or firmware. For example, variousgeneral-purpose machines may be used with programs written in accordancewith teachings herein, or it may be more convenient to construct aspecialized apparatus or system to perform the required methods andtechniques.

The innovations described herein may be implemented via one or morecomponents, systems, servers, appliances, other subcomponents, ordistributed between such elements. When implemented as a system, suchsystem may comprise, inter alia, components such as software modules,general-purpose CPU, RAM, etc. found in general-purpose computers,and/or FPGAs and/or ASICs found in more specialized computing devices.In implementations where the innovations reside on a server, such aserver may include or involve components such as CPU, RAM, etc., such asthose found in general-purpose computers.

Additionally, the innovations described herein may be achieved viaimplementations with disparate or entirely different software, hardwareand/or firmware components, beyond that set forth above. With regard tosuch other components (e.g., software, processing components, etc.)and/or computer-readable media associated with or embodying the presentinventions, for example, aspects of the innovations herein may beimplemented consistent with numerous general purpose or special purposecomputing systems or configurations. Various exemplary computingsystems, environments, and/or configurations that may be suitable foruse with the innovations herein may include, but are not limited to:software or other components within or embodied on personal computers,servers or server computing devices such as routing/connectivitycomponents, hand-held or laptop devices, multiprocessor systems,microprocessor-based systems, set top boxes, consumer electronicdevices, network PCs, other existing computer platforms, distributedcomputing environments that include one or more of the above systems ordevices, etc.

In some instances, aspects of the innovations herein may be achieved viaor performed by logic and/or logic instructions including programmodules, executed in association with such components or circuitry, forexample. In general, program modules may include routines, programs,objects, components, data structures, etc. that perform particular tasksor implement particular instructions herein. The inventions may also bepracticed in the context of distributed software, computer, or circuitsettings where circuitry is connected via communication buses, circuitryor links. In distributed settings, control/instructions may occur fromboth local and remote computer storage media including memory storagedevices.

Innovative software, circuitry and components herein may also includeand/or utilize one or more type of computer readable media. Computerreadable media can be any available media that is resident on,associable with, or can be accessed by such circuits and/or computingcomponents. By way of example, and not limitation, computer readablemedia may comprise computer storage media and communication media.Computer storage media includes volatile and nonvolatile, removable andnon-removable media implemented in any method or technology for storageof information such as computer readable instructions, data structures,program modules or other data. Computer storage media includes, but isnot limited to, RAM, ROM, EEPROM, flash memory or other memorytechnology, CD-ROM, digital versatile disks (DVD) or other opticalstorage, magnetic tape, magnetic disk storage or other magnetic storagedevices, or any other medium which can be used to store the desiredinformation and can accessed by computing component. Communication mediamay comprise computer readable instructions, data structures, programmodules or other data embodying the functionality herein. Further,communication media may include wired media such as a wired network ordirect-wired connection, and wireless media such as acoustic, RF,infrared and other wireless media. Combinations of the any of the aboveare also included within the scope of computer readable media.

Aspects of the method and system described herein, such as the logic,may also be implemented as functionality programmed into any of avariety of circuitry, including programmable logic devices (“PLDs”),such as field programmable gate arrays (“FPGAs”), programmable arraylogic (“PAL”) devices, electrically programmable logic and memorydevices and standard cell-based devices, as well as application specificintegrated circuits. Some other possibilities for implementing aspectsinclude: memory devices, microcontrollers with memory (such as EEPROM),embedded microprocessors, firmware, software, etc. Furthermore, aspectsmay be embodied in microprocessors having software-based circuitemulation, discrete logic (sequential and combinatorial), customdevices, fuzzy (neural) logic, quantum devices, and hybrids of any ofthe above device types. The underlying device technologies may beprovided in a variety of component types, e.g., metal-oxidesemiconductor field-effect transistor (“MOSFET”) technologies likecomplementary metal-oxide semiconductor (“CMOS”), bipolar technologieslike emitter-coupled logic (“ECL”), polymer technologies (e.g.,silicon-conjugated polymer and metal-conjugated polymer-metalstructures), mixed analog and digital, and so on.

It should also be noted that the various logic and/or functionsdisclosed herein may be enabled using any number of combinations ofhardware, firmware, and/or as data and/or instructions embodied invarious machine-readable or computer-readable media, in terms of theirbehavioral, register transfer, logic component, and/or othercharacteristics. Computer-readable media in which such formatted dataand/or instructions may be embodied include, but are not limited to,non-volatile storage media in various forms (e.g., optical, magnetic orsemiconductor storage media) and carrier waves that may be used totransfer such formatted data and/or instructions through wireless,optical, or wired signaling media or any combination thereof. Examplesof transfers of such formatted data and/or instructions by carrier wavesinclude, but are not limited to, transfers (uploads, downloads, e-mail,etc.) over the Internet and/or other computer networks via one or moredata transfer protocols (e.g., HTTP, FTP, SMTP, and so on).

Unless the context clearly requires otherwise, throughout thedescription, the words “comprise,” “comprising,” and the like are to beconstrued in an inclusive sense as opposed to an exclusive or exhaustivesense; that is to say, in a sense of “including, but not limited to.”Words using the singular or plural number also include the plural orsingular number respectively. Additionally, the words “herein,”“hereunder,” “above,” “below,” and words of similar import refer to thisapplication as a whole and not to any particular portions of thisapplication. When the word “or” is used in reference to a list of two ormore items, that word covers all of the following interpretations of theword: any of the items in the list, all of the items in the list and anycombination of the items in the list.

Although certain presently preferred implementations of the inventionhave been specifically described herein, it will be apparent to thoseskilled in the art to which the invention pertains that variations andmodifications of the various implementations shown and described hereinmay be made without departing from the spirit and scope of theinvention. Accordingly, it is intended that the invention be limitedonly to the extent required by the applicable rules of law.

1. A method comprising: receiving, by one or more processors, one ormore electronic messages from one or more client terminals over at leastone network, the one or more electronic messages including exchangeactivity data, the one or more processors configured to executeinstructions stored in a non-transitory memory; determining, by the oneor more processors, whether a total number of the one or more electronicmessages meets or exceeds a predetermined message threshold; when thetotal number of the one or more electronic messages meets or exceeds thepredetermined message threshold: grading, by the one or more processors,content in the one or more electronic messages by comparing at least aportion of the exchange activity data in the one or more electronicmessages to a predetermined metric; and initiating, by the one or moreprocessors, an action in response to the grading of said portion of theone or more electronic messages, the action affecting future messagesfor the one or more client terminals when the predetermined metric ismet and maintaining messaging for the one or more client terminals whenthe predetermined metric is not met; and when the total number of theone or more electronic messages is less than the predetermined messagethreshold: bypassing, by the one or more processors, said grading of thecontent in the one or more electronic messages and initiation of anyaction associated with the one or more electronic messages.
 2. Themethod of claim 1, wherein the action comprises one or more of assessinga financial penalty, increasing a messaging cost, suspending of futuremessaging privileges, generating and transmitting a report relating tothe grading, and generating and transmitting a notice.
 3. The method ofclaim 1, the method further comprising: categorizing, by the one or moreprocessors, the one or more electronic messages by one or morepredetermined categories, based on the exchange activity data.
 4. Themethod of claim 3, the method further comprising: grading only a portionof the one or more electronic messages pertaining to the one or morepredetermined categories that meets or exceeds the predetermined messagethreshold.
 5. The method of claim 3, wherein the one or morepredetermined categories include one or more commodities markets.
 6. Themethod of claim 1, wherein the grading further comprises: applying aweighting factor to the one or more electronic messages to determine aweighted message count for the one or more electronic messages; andaggregating the weighted message count for the one or more clientterminals.
 7. The method of claim 6, wherein the action is initiatedwhen the aggregated weighted message count meets or exceeds apredetermined count threshold.
 8. The method of claim 6, wherein whenthe grading results in the weighting factor being zero, the weightedmessage count comprises zero.
 9. The method of claim 6, wherein thegrading further comprises: assigning a grading value to the one or moreelectronic messages based on the comparing, wherein the grading value isused to determine the weighting factor.
 10. The method of claim 9,wherein the comparing of the at least the portion of the exchangeactivity data to the predetermined metric comprises determining aproximity between the at least the portion of the exchange activity dataand the predetermined metric, and wherein the grading value is based onthe proximity.
 11. The method of claim 6, further comprising:calculating a divisor representative of a quality of the one or moreelectronic messages; dividing the aggregated weighted message count bythe divisor to determine a ratio; and initiating the action when theratio meets or exceeds a predetermined ratio threshold.
 12. The methodof claim 1, wherein the exchange activity data comprise one or more ofmarket order data, bid data, offer data, order revision data, hold orderdata, cancel and replace order data, trade consummation data, and cancelorder data.
 13. The method of claim 1, wherein the at least the portionof the exchange activity data comprises price data and the predeterminedmetric comprises one or more of a live market price and a predeterminednumeric scale.
 14. The method of claim 1, wherein the grading furthercomprises: calculating a total number of executed lots resulting fromthe one or more electronic messages; dividing an aggregated weightedmessage count by the total number of executed lots to determine a ratio;and initiating the action when the ratio meets or exceeds apredetermined ratio threshold.
 15. The method of claim 1, wherein thegrading further comprises: calculating a total number of executed tradesresulting from the one or more electronic messages; dividing anaggregated weighted message count by the total number of executed tradesto determine a ratio; and initiating the action if the ratio meets orexceeds a predetermined ratio threshold.
 16. The method of claim 1,wherein the one or more client terminals comprise one or more of apersonal computer (PC), a mobile communication device, a smart phone, acomputer server, a personal device assistant (PDA), a kiosk, anautomatic teller machine (ATM), a wireless fidelity (Wi-Fi) accesspoint, a router, a database device, a multi-media device, and a gamingdevice.